Q2 2025 Petroleo Brasileiro SA Petrobras Earnings Call

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Mhm.

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Yeah.

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Good morning.

Welcome to Petro drops earnings webcast.

For analysts and investors earnings of 2025, it's a pleasure to be with you today.

Jay to discuss our earnings will be presenting this conference in Portuguese it will be translated into English the links for both languages.

Our.

Investor Relations website.

I'd like to inform that all participants will follow this presentation and listen they bought only on the internet at the end, we'll have a Q&A session and then you can say your.

Questions to our E mail.

Today, we have Martin <unk>, our president of Petrobras, and Colorado Executive Director for energy transition and sustainability <unk> Executive director of Corporate Affairs, Claude Slusser Executive director of logistics commercialization end markets Bernardo milk, Eurasia executive director of finance and Investor.

Our relations and Ricardo Wagner director of golfers Lynch and compliance Renata Perusse Executive director for Engineering Technology, and innovation <unk> executive director for exploration and production and William fronts.

Executive director for industrial processes, and other products I'll now turn it over to our president Bob that Schamber yard.

Her initial remarks you.

You May proceed Mr President Mr. <unk> Mrs precedent.

Good morning, everyone.

I will extend.

Salutation to all of you, including Coronado matter as you are fine as well.

Executive Director Clarice Gopak capacity executive director of Corporate Affairs, Donato Perusse Executive Director Richard Eary.

Ricardo Wagner, our governance and compliance director Cloudburst losses.

Character of logistics commercialization.

William <unk> director for industrial processes and products.

And our.

Newest executive director.

Angelica L'oreal here.

<unk> is in charge.

Gas and energy transition and sustainability.

I'd also greet Eduardo Naughty, our executive manager for Investor Relations.

And everyone who is <unk>.

<unk> This conference online.

I'm really happy to eight inform you that it is a pleasure to have you here in this quarterly conference.

We are really proud of the earnings we have achieved.

In the second quarter of 2025.

Our greatest highlight this.

Increase in our oil production.

I'd like to remind you that a key.

<unk> for F. 2024, we produced 2.090 million barrels of oil a day I'm not talking about barrel equivalent but rather.

Barrels of oil.

And our Capex additional capex.

Well, it's a very important issue.

We got many questions about this why we have decreased our capex.

In the middle of the year.

And then we executed at a little over so the cut that you had made.

In the middle of the year.

I'd like to remind you that in the last quarter of last year.

We had six when the company was therefore six months so when we got our capex in the middle of the year.

We were.

We're meeting a demand and following investment trajectory.

Bruce.

Conducted in the first quarter of 2024.

So after all these issues after they were all addressed these were Burr ferry.

Relevant issues.

Now.

And equivocally, giving you an answer to what we did at that time, So we increased our capex in quarter four.

<unk>.

Took our Capex our guidance and we are now showing you that average bank resulted in an increased production level.

In the second quarter of 2025, we produced 2.3.

Million barrels of oil a day on average.

For those that haven't made the calculation I think you should make these calculations.

<unk> it means 230000 barrels of oil a day. Additionally to the average quarter for 2024.

And this means.

An increase of 5%.

As compared to the first quarter of this year.

And also.

8%.

Compared to the same period last year.

So we can compare this to the same period last year or the previous quarter. What I can tell you is that we have 230000.

Barrels of oil a day in addition to the <unk>.

The average production of quarter four last year.

At that time, we got many questions. What you were challenged about the use of our capex.

I'll now share give you a spoiler alert.

Further increased our production in July so our average.

June July is 2 million.

470000 barrels of oil a day in addition to guess that has been reduced.

And this means.

That.

That means 380000 barrels of oil a day.

Additional barrels in our production.

<unk> got to the same quarter for the one I've just mentioned.

So you see a production ramp pop that's in equivocal.

When you consider.

$2 million 90.

And.

Barrels a day.

In quarter four.

2 million.

300000 in quarter, two 2.470 million.

In the first month.

The third quarter. So this is an equivocal ramp pop and the use of capex that solved.

Aid.

Greater production in a in the short run.

Right.

This increased production is a result of our commitment.

In this.

Administration with our government shareholders and also our private sector shareholders the commitment to seek.

Robust execution of our planning.

So we have the guidance of our production we are at the close to the top of our guidance for the year and we are absolutely within the guidance when it comes to <unk>.

Production.

And also when it comes to investment.

We are speeding up our deliveries you are witness it can bear witness to this and this can be translated into value generation.

To all our stake holders and I repeat both government as both government and private sector stakeholders, increasing production and 380000 barrels a day in only seven months required.

A lot of effort.

A lot of cooperation between our teams and also in <unk>.

Moving our internal procedures.

As well as a lot.

Overall.

Sheathing this feat in such a short period of time is not an easy task.

An additional 380000 barrels a day is more than the production. If some countries. So this is a consequence of our commitment to our effort and dedication that was really significant.

Cooperating and improving our management.

Result is very hard work of our entire teams.

This increased production as I said was the only possible because we.

Our capex.

And we are also speeding up Abbott, saying that can be sped up.

Making sure that we do this safely and also respecting the environment and with a lot of responsibility.

Now I'll mention and gave you examples of some of our deliveries.

These deliveries are.

The result, and they ensure that you have petro process investors.

Active than they are where they can become a way of reaching the results that we wanted we increase our top.

Production.

Volume in the Decatur Cashiers platform. This platform has a capacity of 880000 barrels a day.

Barrels of oil.

In addition to gas we also anticipated the beginning of our.

Of the production of the Alexander de Guzman platform.

Over two months.

This is a platform of 180000 barrels of.

Of oil a day in capacity.

We've also anticipated and delivered.

Within this period.

The greatest.

The largest platform in Brazil that started.

Operating.

In February.

And it has only.

For pre salt production.

Wells into hundred mill.

Sorry, 200000 barrels of oil a day only four wells oil wells are producing 200000 barrels a day.

That's an additional example of that investment and all the efforts that <unk> put into this.

Pete.

The entire team.

This platform in the next few weeks and following weeks will reach 225000 barrels a day.

And there will be a fifth pre salt.

Oil produced production well, so I really.

Think about what does that mean 225000 barrels a day.

Only with a five pre sold oil wells.

These efforts by Petrobras are on.

We.

Our considering increased production that needs for <unk>.

Increased production and all so.

Our <unk>.

Cost reduction needs. We are aware that we made our strategic planning last year considering.

And oil price level up $83 per barrel and today.

The price is 70 $67 per barrel, we are absolutely aware of this fact, and we are ready to respond by increasing production and reducing cost.

As for production increases this year.

We have linked over 50 wells what does that mean.

This means that by the middle of the year, we had already linked.

More oil wells at all so started production of more oil wells.

Then.

And the entire year 'twenty 'twenty four.

This was only possible.

Because of our joint efforts in a great partnership between all our top.

Our executive suite.

Members with lots of processes collaboration and processes partnership analysis and also <unk>.

Inventory optimization.

From the perspective of our.

C suite and their teams we have delivered more.

And spent less so we are congratulating all teams.

We are.

Expressing our total support and incentive for them to continue on this very good track.

We are also presenting new question, we will be soon presenting at the beginning of <unk>.

B 78 platform operation.

That will work with pre salt with a capacity of an additional 180 barrels a day.

I'd like to remind you that these platforms.

They were.

Inhabited or bacon they were they.

They had no crews so we changed this procedure. So now that you have a crew.

They go straight to their location.

Or their sites and that also anticipates production and operation of more oil.

Hey, Ken.

To benefit our investors Gaba permit or private sector investors.

That's another improved.

Procedures that ultimately means more oil in the tanks in our tanks. We also had.

More.

The natural gas supply offered to the market we increased our gastro.

Gas production by 15% to the market.

And this was a result of.

Our.

Route.

Three.

Reaching the state of Rio de Janeiro.

In the border Ventura complex.

And this also means that in addition to our route three.

There has been a lot of effort put into processing this gas.

A gas processing unit.

In the bulb into a complex in the <unk> hub.

Ladies and gentlemen, we are really happy.

To have a all this good news to you. These deliveries are under our control.

Totally in control of them.

So we are.

Did the recurring them, we're improving all of them and you can rest assured that in our daily work that means continuous improvement.

And this is done when the company realizes that there is a challenging <unk>.

Scenario.

Geopolitical challenges that are ahead of us when we consider.

The price of our final product.

Crude oil and gas.

As I said these factor.

Factors are not control the price of crude oil.

Is not under our control however, mitigating.

<unk> sees a price variations this is indeed.

Under our control so we are responding by increasing production.

We had also increased production.

And also a.

This very strong perspective.

Cost reduction.

Second quarter, you know the second quarter was impacted by a falling oil price was around 68.

<unk> dollars per barrel that was 10% down as compared to last year last semester, and we responded by increasing our production by 5% and that mitigated that effect considerably the effect.

Oil price falls in our balance sheets.

We are now.

Working hard and you can rest assured that we're doing this to make our projects.

Kris Maly more competitive.

In this scenario of uncertainty and in this scenario.

Rice bowls of our firewall project.

<unk>.

And the major product is crude oil you will see that.

We will have more earnings in our next business plan that will be presented by the end of the year. So we are analyzing all possibilities.

<unk> Fi and optimizing our projects to reduce costs.

And also to eight cranes efficiency gains.

Having said that I would like to repeat what I mentioned in the previous webcast.

What I have been saying since the beginning of my speech today, we are absolutely committed to.

Looking for the best possible results for our.

Our investors and for the Brazilian Society as a whole we will generate value even in challenging scenarios.

Ms of oil prices, our projects will be profitable and valuable.

Sure.

Portfolio of our company.

We will get.

<unk> to the things, we do best which is to explore and produce oil and gas.

It's project.

Selling these projects efficiently and with quality.

Always.

<unk> com highly all these efforts.

Hillary our need to provide.

A fair the energy transition.

Thank you very much for joining us and now we will.

Proceed to the presentation of our CFO.

Fernando mill that issue.

Will.

Talk about the financial results of our company Fernando.

The floor is yours.

Good morning, everyone.

Good morning to those who are listening to us.

I'd like also to greet everyone from the center. Thank you for joining us for another Petrobras earnings webcast. So now begin by presenting the key figures for the second quarter of 2025.

Well, Mike has already highlighted in her opening remarks, the remarkable growth in our production. This quarter on this slide you can see that while Brent prices.

Declined by 10% quarter over quarter.

Coming from.

$75 seven from six 7% to 75%, we had an increase of 5% with new production systems and improving operational efficiency across all of our fields as our CEO mentioned the first half of the year, we already reached the midpoint of our 2025 production pocket, which is two point.

3 million barrels per day commercial.

Commercial gas production also grew significantly Petrobras increase its gas supply to the market by 15% mainly due to the progress of the road of Threep outline and absorbed into the gas processing units when considering total.

Production, we reached a new record of $4 2 million barrels of oil equivalent per day.

This increase production all of quarter, two was key to delivering financial results in line with the previous quarter. It was only made possible through consistent capex execution and strong engagement from our workforce.

Our Capex has been discussed in many situations if it will be probably presented it will have an impact on the production that this is being presented now let's move on to slide six our operational.

Slide six.

So we reported net income excluding one off events of 4.1 billion U S dollars and EBITDA also exclude the one off events.

$10 2 billion in U S. Dollars. These figures are on par with the previous quarter when Brent prices were 10% higher in other words, our strong operations.

Results offset external factors, which were beyond our control for example, the price of the commodities.

With management of our commercial strategy also positively contributed to the results we implemented three diesel price reductions in the quarter, two and one government price reduction through the period, maintaining competitive margin and profitable operations and also the company's share operating cash flow was.

$7 5 billion of U S and all of US here, we saw a decline compared to the previous quarter, mainly due to known of bench.

Such as piece.

He is convinced that credit.

Related to last year's snacks transaction.

Please had positively impacted quarter 125 results, but was not the case for this quarter. Additionally, the payment of variable remuneration.

We've had a higher Brent which is the basis.

Two payments to governments shareholders.

Payment of variable remuneration, which usually impacts company cash flow in the quarter to after the shareholders meeting.

Oh.

Hence that will not happen in the next quarter. Additionally in quarter, two we had higher selling expenses, mainly due to increased crude oil export volumes because of our production slide.

Slide seven here, we present, our data history, you can see that both financial debt and chartering remained under control and that over 60% of total indebtedness relates to leases of plateau foams vessels and rigs, which according to account the sand.

This must be recognized is that it is important to remember that this lease portion refers to assets generated production at often quickly revenue for the company.

Yes.

We commissioned this year.

<unk> and extend the Docomo <unk>.

Among both charter Plaza, we had to record lease liabilities as debt.

These two platforms.

<unk> three 7 billion to our debt this year.

We added 207000 barrels per day of production capacity for our company considering other vessels and Amortizations leases added approximately 5 billion U S dollars to over deaths in the first half of 2025.

So these leases are associated with more capacity more production and therefore, they add revenue to our company well regarded financial debt. This quarter, we highlight the successful public offering of debentures totally 3 billion Brazilian real.

It was successful with high demand and allowed us to raise funds in the local market something we hadn't done for atheist with competitive cost in line with number of liabilities management strategy slide eight we're going to talk about Capex, we invested $4 4 billion U S dollars in quarter two.

With added to the first quarter leads to $18 5 billion U S dollars for this year. We are according to our plan of our guidance, which is 18 point high for the year, we have a firm commitment to the market to execute what we planned accelerating.

<unk> generated deliveries and anticipated revenue due to these efforts.

They started production from the peak.

So I'll, let Shaun ridiculous mall, you're starting over two months ahead of schedule as our CEO has already mentioned there'll be there's still.

A huge platform began operating in February as I read through.

200000 barrels with 104, producing wells so when we reach peak of production in 2025, we have embedded connect more wells than in the tie in previous years 48 wells, including 330, producing an 18 injecting wells in the same period last year.

31, <unk> produces and 19 injectors.

This is therefore, a capex there is very much focused on production. That's now proceed to slide number nine.

Petrobras investments.

Has been bringing benefits to the company its shareholders and society. We are talking here about more production and consequently, more operational cash flow and we.

Alright, now imports and exports of commute commodities competing just Brazil straight Dallas is not just investment in new projects, we are improving efficiency adjusting our madness, Kansas and energy reservoirs efficiently all of this contributes to the production curve growth.

Our CEO mentioned in her opening remarks production in July.

<unk> exceeded the previous quarter, we are talking here about.

300, an increase of 380000 barrels per day only seven months.

With the strength and ongoing efforts, we expect average lives on gas production in 2025 to be at the upper end of the target range, representing about 100000 barrels per day above the midpoint.

At a price of 70 U S dollars.

U S dollars, we would have an additional $2 $5 billion revenue.

And this current planned production carries less risk today than when the plan was approved in other words for the same confidence level, we would have the highest curve today slide number 10.

We have talked about Capex production and now we would talk about dividend.

I want to remind you of the strength of our shareholders' remuneration policy the formula issues dividends aligned with different oil prices without compromising the companys financial robustness. Accordingly, we are applying the formula as set forth in our policy and we will distribute 45% of free cash flow from.

Florida too.

Therefore, the board approved a distribution of $8 7 billion Brazilian real.

Equivalent to <unk> 67 per share to be paid in two equal with softness in November and December this year.

Well. This concludes my presentation and thank you all again for your attention.

So along with the other directors I'm available to answer.

Your questions now.

Now I hand over to Eduardo who will then continue with the Q&A session.

Thank you Fernando Thank you monitor.

So let's start with the Q&A session.

Yeah.

We had indicated here.

You can proceed with it.

Good morning, Thank you very much for the call.

So I will align capex results with the video mentioned yesterday.

Work with <unk>.

<unk> mesh as Petrobras has been focusing cut capex, particularly on upstream delivering operational results wed like to understand what we can expect in terms of new investments in the next few years.

This is the degenerative disease integrated to the business plan, including his strategy from the board and timing for this operation.

Operation.

Thank you for the question.

We are a company that has started already integrated so.

Petrobras is 10 to 20 years old and it has started and it became what it is because it is a company that is integrated all over so.

With that we are looking at the possibility of reaching synergy when we look at any increase in gas production. For example, we are looking at what it represents for example.

In terms of more.

L. A N G for the market, we import LNG and we will deliver more.

This margin.

Related to our products that also needs to be captured so widely did yesterday was to say the following well here we have the product that will have increasing production and.

It's a good business for the company that's profitable and if this is <unk>.

Properly attractive white hot.

These additional synergy so we have nothing insight right now.

No.

<unk> to acquire.

L N G.

There is nothing.

Petrobras portfolio, but we guarantee that make sure we wanted to make sure that the doors were open for.

A possibility if the project is good and profitable.

If the.

Project attractiveness is in line with.

What the Petrobras demands.

Well maybe.

We.

So you basically Petrobras has already been working to be the best choice to our customers and being the best choice to our customers needs to have competitive prices to really have availability.

Whereas the demand for the products. So we had already been doing that to the extent that we have direct sales. We have been trying to have their xa is too big customer. So we are doing that already we have tried to access terminals channels and advancing it in a way.

Obviously this is the way of distributing will get to the source, it's something that is natural.

As our CEO has mentioned we will have a significant production of diesel we didn't have any crease in production of <unk>.

Ill N G. So all work for that we didn't market. So the market is the way to monetize and it's the most profitable thing for our company. This is weyerhaeuser half, let's go to <unk>.

We have been advancing and direct sales indirect sales of LNG, where we have the infrastructure available we are talking with big customers to supply now.

And G director Joseph capturing a margin as our CEO said I would say.

This vision is very natural.

So we have a driver here I think it's on the table for discussion and we will look at as an office leader.

And does the economic rationale.

Our CEO mentioned and we're going to look at it.

This will.

Be considered for approval going through our board well just added to that from the point of view of Calvert.

As we've already understand will follow.

The assessment by governance availability of funds in order to make investments when needed.

So we are really sure that any project.

It will be implemented if it creates value for all our shareholders and if theres definitely disciplined and the capital to be used in the project.

So it has to do with.

The debt limit we have.

Then we have have been strongly managing our debt and we intend to reach the target we presented in our strategic plan for 'twenty five 'twenty to 'twenty nine.

Speaker #1: Petrole os are on. We are considering increased production, the needs for increased production in also our cost reduction needs. We are aware that we made our strategic planning last year considering an oil price level of 83 dollars per barrel.

Thank you.

Another minor delay any for the question next question Bruno Montanari.

Morgan Stanley.

Good afternoon. Thank you for taking my question I'd like to congratulate the company for the significant increase in production.

So a different period of time.

It's very clear the ramp up of the new class of homes at the pre salt layer unlike toward the center.

About the risk factors that is left that leading to a more conservative curve and connected to a better execution.

Speaker #1: And today, the price is $67 per barrel. We are absolutely aware of this fact, and we are ready to respond by increasing production and reducing costs.

Trying to advance a potential revitalization of his opinion.

So that you have given greater production in the midterm. Thank you very much.

Speaker #1: As for production increases this year, we have linked over 50 wells. What does that mean? This means that by the middle of the year, we had already linked more oil wells and also started production of more oil wells than in the entire year of 2024.

Good morning, everyone.

We are in a very special quarter, we had increase in our production.

Speaker #1: This was only possible because of our joint efforts and a great partnership between all our top. Our executive suite members with lots of processes, collaboration, and processes, partnership, analysis, and also inventory optimization.

Well, we spent last we produced more.

And we also destroyed it reduced our costs show.

The issue of production in the fields, we are talking about this grille.

And.

This is really the first of this reservoir.

Speaker #1: From the perspective of our C-suite and their teams, we have delivered more and spent less. So we are congratulating all teams; we are expressing our total support and incentive for them to continue on this very good track.

A reservoir in the pre salt layer the effective response.

The rock is only given one the field disconnected we have had very good surprises expectations have been confirmed in terms of increase in production well there aren't really very productive we have four wells with over 200000 production and by the end of the year.

Speaker #1: We are also presenting a new question. We will be soon presenting the beginning of the B78 platform operation. That will work with pre-sold with a capacity of an additional 180 barrels a day.

We are planning to increase production, but we'd like to remind you that we.

We'll have this as a platform.

We have started some big platforms and we will have the plant shutdowns. So this increase will level off but anyway by the end of this year, we will have an increased reaching our target.

Speaker #1: I'd like to remind you that these platforms were inhabited in vacant; they were they had no crews. So we changed this procedure. So now they have a crew; they go straight to their location or their sites, and that also anticipates production and operation of more oil.

Four plan, but the upper portion of our target we are looking at it appear to be.

Improving optimization with new units to increase production there.

Okay.

Now, adding to the question you mentioned two P. A particular right. So as Sylvia mentioned two P. S b.

Speaker #1: Again, to benefit our investors, government or private sector investors. That's another improved procedure that ultimately means more oil in the tanks in our tanks.

Is having at least another two projects are revitalizing two P.

And what we call complementary to P.

Speaker #1: We also had more natural gas supply offered to the market. We increased our gas production by 15% to the market. And this was a result of our route three reaching the state of Rio de .

Our challenge is to make two peak reached the level of 1 million barrels of oil a day.

Thank you Pekka Sylvia Thank you Mark.

Margaret Thank you Bruno for your question Office Center.

Cynthia Bradesco bradesco.

So they sent it over to you.

Good afternoon, everyone. Thank you for taking my question I'd like to discuss the G. L P release or LPG released.

Speaker #1: In the Boa Ventura complex, and this also means that in addition to a route three, there has been a lot of effort put into processing this gas in a gas processing unit in the Boa Ventura complex.

And you published last night, so any M&A of any movements in this sector they need to be approved and in November our plans first and only then.

You would do any make any transactions. Then you also mentioned on the release that you had would have partnership distribution partnerships. According to.

Speaker #1: In the Itaboraí hub, ladies and gentlemen, we are really happy to have all this good news to share with you. These deliveries are under our control.

Quote unquote.

Professional.

Contract provisions so what kind of partnership is this what are these.

Contract provisions thank you.

Speaker #1: We're totally in control of them. So we are delivering them, we're improving on them, and you can rest assured that in our daily work, that means continuous improvement.

As the executive director of <unk>.

How do you.

Cortez Foster mentioned as our production increases our greatest challenge is to get it.

These products onto the market and also to widen our market base, we have increasing production that means extending our refinery.

Speaker #1: And this is done when the company realizes that there are challenging scenarios and geopolitical challenges ahead of us. When we consider the price of our final product, crude oil and gas.

Uh huh.

So city or refinery system, we want to increase diesel S.

S stand, which is highly profitable and at least an additional 200000 barrels a day.

Speaker #1: As I said, these factors are not controlled. The price of crude oil is not under our control. However, mitigating the effects of these price variations is indeed under our control.

As a result, theres more pressure for increasing markets.

So what are we what have we been doing we knock at the door up our largest consumers.

Speaker #1: So we are responding by increasing production with also increased production and also a very strong perspective in cost reduction. In the second order, you ow the second order was impacted by a falling oil price that was around 68 US dollars per barrel.

Including Agri business in Brazil, agribusiness consumers.

We are now having a L. A G.

E L. L. P G not only industrial but also domestic in other words, we are expanding our natural gas market and as you can see our efforts too.

Pat.

Natural gas in Brazil Street market Matt.

Speaker #1: That was 10% down as compared to last year. Last semester. And we responded by increasing our production by 5%. And that mitigated that effect.

That a large number of companies that are now part of this move made by Petro Bras. This is why we extended this gas market by 15% now we got we cannot have is limitations.

Speaker #1: Considerably, the effect of oil price falls. In our balance sheets, we are now working hard. And you can rest assured that we're doing this to make our projects increasingly more competitive in this scenario of uncertainty and in this scenario of price falls of our final project.

Two.

Make strive to make progress in this area. So whatever is b.

T or sales to large consumers sales.

The final consumers.

And.

Gas stations.

We're even in terms of gas.

Speaker #1: Product in the major product is crude oil. You will see that we will have more earnings in our next business plan that will be presented by the end of the year.

What we want is to.

Half open doors to make Choi.

Choices to choose the best company that will add the most value possible and in the most efficient way up really placing our product in the market.

Speaker #1: So we are analyzing all possibilities of simplifying and optimizing our projects to reduce costs and also to increase efficiency gains.

Now after we understood.

That petro grass overtime Petrobras has chosen.

Two.

League Submarkets behind we had this duty so why having this duty if leaving Submarkets why can't we leave the store open.

Speaker #2: Have ou said that? I'd like to repeat what I mentioned in the previous webcast. And what I have been saying since the beginning of my speech today: we are absolutely committed to looking for the best possible result for our investors and for the Brazilian society as a whole.

So that this door may be used in the best possible way.

And this is what we did yesterday.

Thank you Magda.

Thank you for your question now Gabrielle part of city Gabriel you have the floor.

Speaker #2: We will generate value even in challenging scenarios. In terms of oil prices, our projects will be profitable and valuable for the portfolio of our company.

Thank you or not.

The President Monica Fernando. Thank you for taking my question My point here is just once.

One of the major topics that has been discussed with investors are of course your investment plan for next year.

Speaker #2: We will dedicate ourselves to the things we do best, which are to explore and produce oil and gas, and to sell these products efficiently and with quality. We will always reconcile all these efforts with our need to provide a fair energy transition.

We have a perspective and taking the queue of the last commitment when you discussed efficiency gains.

And the difficulty we have today hiring.

Personnel in tighter industry environment.

We have a software price movement for probes.

But.

I think what I need to understand better is about what's going to happen and what can we expect next year. When you look at our <unk>.

Speaker #2: Thank you very much for joining us. And now we will proceed to the presentation of our CFO. Fernando Melgarejo. Who will talk about the financial results of our company, Fernando?

Plans for.

For the future and also considering your previous Capex data. So how flexible are you for next year.

And.

What <unk>.

Solutions could you.

Provide or improve for 2026 and what our M. As Ed also L. P G or other fuels.

Speaker #2: The floor is yours. Good morning, everyone. Good morning to those who are listening to us. And I'd like also to greet everyone from the Spaniel.

So how does that mean more capex efficiency.

Or a market that is a little more uncertain in terms of oil price in the next few months or even next few years, Okay I'll start answering it and all.

Speaker #2: Thank you for joining us for another Petroleo Brasileiro webcast. And now we begin by presenting the key figures for the second quarter of 2025.

Give the floor to Fernando and also Sylvia and Renata if they believe they should also.

Speaker #2: Well, Magna has already highlighted in her opening remarks the remarkable growth in our production this quarter on this slide. You can see that while brand prices declined by 10% quarter over quarter, going from 75.7 from 60.7 to 75%, we had an rease of 5% with new production systems and improved operational efficiency.

Comment or the question.

Well, what we are what we've been telling you is that we too have extremely relevant business opportunities in exploration and production of oil.

Company past the major focus its major focus is exploration and production with highly profitable projects you saw the profitability level of these projects.

Speaker #2: Across our fields, as our CEO mentioned at first half of the year, we already reached the midpoint of our 2025 production target, which is 2.3 million barrels per day.

So when we show results.

In the second quarter.

We have decreased prices that were offset by increased production levels. So when we look at these projects first we will check whether they're profitable and number two whether the profitability level is desired. If this is the case then we.

Speaker #2: Commercial gas production also grew significantly. Petroleo Brasileiro increased its gas supply to the market by 15%, mainly due to the progress of the Rota 3 pipeline and the Boa Ventura gas processing unit.

Speaker #2: When considering total production, we reached a new record of 4.2 million barrels of oil, equivalent per day. This increased production of oil in quarter two was key to delivering financial results.

We move on in other words, we will not destroy value rather we will move on with profitable projects and.

In a way.

We should also.

Inform you that for the first time, an old Patrick process lie.

Speaker #2: In line with the previous quarter, it was only made possible through consistent CAPEX execution and strong engagement from our workforce. And our CAPEX has been discussed in many situations, if it would be productive, it would have an impact on our production and this is being presented now.

Project.

<unk>, it's phase so.

We had <unk>.

<unk> that we're progressing into our portfolio advancing in their phases moving on and their paces.

You know you'll have 0123 and four are assigned to our project.

Speaker #2: Let's move on to slide six. Our operational slide six. So we reported net income excluding one of events of 4.1 billion US dollars and EBITDA also excluding one of events of 10.2 billion US dollars.

Our means the project is totally mature so we had projects that were expected to.

My great from phase three to phase four now when we look at them with this new level. They went back to level two.

Speaker #2: These figures are on par with the previous quarter when brand prices were 10% higher. In other words, our strong operational results offset external factors, which were beyond our control.

The idea was that these projects could be optimized.

In other words.

We won't leave these projects behind they are still <unk>.

Speaker #2: For example, the price of the commodities. Efficient management of our commercial strategy also positively contributed to the results. We implemented three diesel price reductions in the quarter two and one gasoline price reduction during the period.

First of all they used to be profit.

Profitable before.

<unk>.

The profitability level that they had at that time with the current <unk>.

Oil price, we decided to put them a few phases back back to the drawing board. So that these projects to be better optimized I'll now give the floor to Fernando and then Renata. So that they can give you a little more details.

Speaker #2: Maintaining competitive margins and profitable operations, as well as the company's share, operating cash flow was $7.5 billion. Here, we saw a decline compared to the previous quarter, mainly due to known events such as pace consistent credit related to last year's tax transaction.

Thank you Gabrielle for your question.

First.

I should stress that parents scenario is more challenging and that reflects on our in our business plan.

Speaker #2: We had positively impacted quarter one, 25 results, but was not the case for this quarter. Additionally, the payment of variable remuneration which had a higher breadth, which is the basis to payment to government shareholders and payment of variable remuneration.

And as we have a <unk>.

Commitment with capital discipline, all our business plan structure needs to be.

Adequate.

To reflect the needs for this new scenario in other words, we'll be able to restructure all our capex that will better meet the needs of our investing capacity considering our new production curve.

Speaker #2: Which usually impacts company cash flow in the quarter two after the shareholders' meeting. All events that will not happen in the next quarter. Additionally, in quarter two, we had higher selling expenses.

That we Ebola the FERC.

Until a potentially even above that margin, but within that margin or even.

And the upper.

Speaker #2: Mainly due to increased crude oil export volumes because of our production. Slide seven. Here we present our debt history. You can see that both financial debt and shortering remain under control.

Range make that Brent Brent is lower so we need to offset that and then the cash flow generation that is possible.

So I believe the greatest go our greatest commitment is really to reduce cost for the company and also optimizing projects at our precedent mentioned is the first time, we went back to phase two.

Speaker #2: And that over 60% of total indebtedness relates to leases of platforms, vessels, and rigs. Which, according to accounting standards, must be recognized as debt.

Consider engineering.

Speaker #2: It is important to remember that this lease portion refers to assets generated production and consequently revenue for the company. When we commissioned this year the SO's Alexandre ugmon, both shorter platforms, we had to record lease liabilities as debt.

Aspects.

And then also our productivity so all these factors together.

They are integrated in our business plan. The idea is for us to devise a business plan that shows all this capital discipline with adjusted debt adjusted to our size, we do not want to increase our debt for no reason of course, our target is still 65.

Speaker #2: These two platforms added 3.7 billion to our debt this year. But on the other hand, we added 207,000 barrels per day of production capacity for our company.

I've been in this will remain.

So we want to create a portfolio and a business plan that is safe and secure and adapted to the current situation and scenario.

Speaker #2: Considering other vessels and amortizations, leases added approximately 5 billion US dollars to our debt in the first half of 2025. So these leases are associated with more capacity, more production, and therefore they add revenue to our company.

Hello, Gabriel I think they see.

Everything that had to be said, but I just like to add one more point whatever the value of our business plan in 2026, a rest assured that we will realize make it happened this year in the first quarter of last year. It was at 30%.

Speaker #2: Well, regarding financial debt, this quarter we highlight a successful public offering of the ventures, totaling 3 billion Brazilian reals. It was successful with high demand and allowed us to raise funds at the local market.

<unk>.

And this quarter. It is in line to what we had planned Apis 30 below.

Speaker #2: Something we hadn't done for eight years. With competitive costs, in line with our liabilities management strategy. Slide eight, we are going to talk about CAPEX.

The expected levels of whatever value, we will execute as planned.

Magda Fernando Renata.

Speaker #2: We invested 4.4 billion US dollars in quarter two. Which added to the first quarter leads to 18.5 billion US dollars for this year. We are, according to our plan, of our guidance, which is 18.5 for the year.

Thank you and thank you Gabriel for your question.

Now maybe on yen of H S. B C. You have the Florida, Gianni Hello, and thank you for the opportunity.

Can you please tell us about.

Speaker #2: We have a firm commitment to the market to execute what we planned. Accelerating value-generating deliveries in anticipating revenue. Due to these efforts, we started production from the SPSO Alexandre de Guzmão, starting over two months ahead of schedule.

<unk> are different the results are today as compared to what you.

Promised and your strategic plan and of course, it's better than expected youre, probably at the top of our guidance, but again can you. Please make comments about your capex.

$18 5 billion investment plan.

So in summary.

Speaker #2: As our CEO has already mentioned, they are a huge platform, began operating in February, and already reached 200,000 barrels with only four producing wells.

Is it safe to say that today, there's a higher likelihood if this capex be higher this year.

Are you feeling pressure from providers suppliers can you.

Speaker #2: Soon we will reach peak of production in 2025, we have already connected more wells than in the entire previous years. 48 wells including 30 producing and 18 injecting wells.

But you can expect Petrobras to put more money into braskem at that might be a good consumer of your gas. Thank you.

Loan again I. Thank you for your questions.

Speaker #2: In the same period last year, we had 31, 12 producers, and 19 injectors. This is therefore a CAPEX that is very much focused on production, national procedures line number nine.

All contracts for our 2025 plan and part of 2026. They are already at the contracts have already been signed.

So there is no possibility of our or any idea of a relief.

Speaker #2: Petroleo Brasil's investment has been bringing benefits to the company. Its shareholders and society. We are talking here about more production and consequently more operational cash flow.

Exceeding our guidance, we will meet whatever with set on our guidance. So our commitment is.

It's short there are no surprises ahead for brass team.

Speaker #2: And we are now important exporters of commodities contributing to Brazil's trade balance. It's not just investment in new projects we are improving efficiency, adjusting our maintenance schedules, and managing reservoirs efficiently.

If you allow me to.

Just stopped.

Auto protocol and pinpoint some of the things you've discussed you had 400 and fabric product that was the production number of Port July and then newer platforms. This year, so I'd like to confirm something you said earlier.

Speaker #2: All these contribute to the production curve growth. Our CEO mentioned in her opening remarks, production in July which exceeded the previous quarter. We are talking here about 3 an increase of 380,000 barrels per day only in seven months.

Her with two 470 is still growing and then there's the <unk>.

Effect of scheduled shutdowns, maybe you can give any more details, but this I think has to do with previous comments I wanted to repeat these points that maybe if you could clarify them a little bit more and then the question is about the last auction with the Amazonas blocks.

Speaker #2: With this trend and ongoing efforts, we expect average oil and gas production in 2025 to be at the upper end of the target range, representing about 100,000 barrels per day above the midpoint.

And in particular what was that.

That partnership with Axa alike.

Speaker #2: At a price of 70 US dollars, US dollars, we will have an additional 2.5 billion US dollars revenue. And this current planned curve carries less risk today than when the plan was approved.

Do you believe Theres synergy.

With Guyana and Suriname.

Thank you.

Yeah.

Okay rashes.

Speaker #2: In other words, for the same confidence level, we would have a higher curve today. Slide number 10. We have talked about CAPEX, production, and now we will talk dividends.

With regard to the ramp up there was indeed, a production increase at our reports.

You can see that you.

Speaker #2: I want to remind you of the strength of our shareholders' remuneration policy. The formula ensures dividends aligned with different oil prices. Without compromising the company's financial robustness.

You have efficiency in the linking of the wells.

Of the world.

Forget about the lab was <unk> seven.

And.

Speaker #2: Accordingly, we apply the formula set forth in our policy and we will distribute 45% of a free cash flow from quarter two. Therefore, the board approved a distribution of 8.7 billion Brazilian reals equivalent to 0.67 per share to be paid in two equal installments in November and December this year.

And the reservoir than responded well.

And we had a rapid production increase this growth it'll be offset by.

The other.

Other large platforms that our program to start production.

I can confirm that there is a safety we want our platform to have a long life and also we want to make sure that we have future operations. So scheduled shutdowns are essential that need to be.

Speaker #2: Well, this concludes my presentation. And thank you all again for your attention. So along with the other directors, I'm available to answer your questions.

But we.

Our within our plan.

Speaker #2: Now I hand over to Eduardo, who will then continue with the Q&A session. Thank you, Fernando. Thank you, Magda. So let's start with the Q&A session.

Golar and in fact in the upper range and that's about four so we will have a very positive resolved.

It is important to mention that the pre salt layer is really surprising in terms of productivity. It's been a very positive surprise with very good results in earnings we have an oil column.

Speaker #2: Mirani, can you hear us? You can proceed with the question. Good morning. Thank you very much for the call. So I will allow CAPEX results with the what you mentioned yesterday, so that you work with natural gas distribution.

That's as high as the punt yasuko mounted and at the size of the <unk> business is twice as large as the Guanabara Bay. This is only confirmed when you start producing as for the auction. Yes, we did I had the auction and defined the 10 blocks. We now have 16 plots in the.

Speaker #2: The CEO mentioned Petroleo has been focusing CAPEX, particularly on upstream. Delivering operational results. We'd like to understand what we can expect in terms of new investments in the next few years and how this is generating this integrated to the business plan, including a strategy from the board and timing for this operation.

In Amapa, we're just waiting for environmental licensing to test our productivity out.

I should stress that the blocks we have there they are very similar.

Two.

The what we have in Venezuela, Guyana.

And very similar to what we have here in the Campos basin as well.

Speaker #2: Thank you for the question. We are a company that is started already integrated. So Petroleo is 71 years old and it is started and it became what it is because it is a company that is integrated all over.

So we know them really well.

And then the partnership with Axa in and share our way.

We have over 30 partners Petrobras has over 30 partner, so choosy or this.

Choice of working with <unk>, which is a great. Operator has made very significant results at Guyana, and that's very similar to the equatorial margin results. So.

Speaker #2: So with that, we are looking at the possibility of reaching synergy. When we look at an increase in gas production, for ample, we are looking at what it represents; for example, in terms more LNG for the market, we import LNG and we will deliver more this margins.

Perhaps the best operator for us to share risk and knowledge.

Thank you Sylvia and hatch for your Quest rashes for your question about the Graco of Tau Monique Monique you have the floor money.

Hello, Good afternoon, and thank you for taking my questions by the way congratulations for your operating performance, it's really impressive congratulations to the entire team.

Speaker #2: Related to our product, they also need to be captured. So what we did yesterday was to say the following. Well, here we have the product that will have an increasing production and if it's a good, good business for the company, if that's profitable, and if this is properly attractive, why not have this additional synergy?

I have one question only.

The message.

Yeah.

Okay.

Your capex on gas.

It does vary that message was very clear.

Now we know that there are some potential movements operator.

Speaker #2: So we have nothing in sight right now. No project to acquire LNG. There is nothing in Petroleo Brasil's portfolio but we guarantee and make sure we wanted to make sure that the doors were open for a possibility if the project is good and profitable and if the project attractiveness is in line with what Petroleo Brasil demands.

And then on the horizon. The next few months like precedent.

Sharply I mentioned movements in ethanol for instance.

And note that the government will hold auctions for areas.

They are areas that would not hired this year still so can you.

Clarify about what we're expecting in terms of Capex execution. In addition to the $18 5 billion.

Where do you consider these additional movements that are short.

Term horizon can you maybe.

Explained, especially in the non hired areas.

<unk>.

Speaker #2: Well, maybe we can say basically Petroleo Brasil has already been working to be the best choice to our customers and being the best choice to our customers means to have competitive prices to really have availability where the demand for the product so we have already been doing that.

Hello, Monique Thank you for your questions.

Okay, Petrobras will always be present.

When we.

Discuss.

Any opportunity of.

Auctions.

The Brazilian territory is our home.

Speaker #2: To the extent that we have direct sales, we have been trying to target big customers. We are doing that already. We have tried to access terminals and channels, and we are advancing in a way that is obviously a form of distribution.

In other words, when pre salt layer areas or be awkward.

We will always be present at such Hauck <unk> <unk>.

This is really in our interest.

However, irrespective of any other factor this will only happen if it makes economic sense to us.

Speaker #2: We will get to the source. It's something that is natural. Our CEO has mentioned we will have a significant production of diesel. We will have an increase in production of LNG.

No one is considering embarking on eight wild adventure of course.

Speaker #2: So all, well, for that we need markets. So the market is the way to monetize and it's the most profitable thing for our company.

The project is worth it and if it is on our business plan.

This is the direction will be taking the same thing applies.

Speaker #2: This is where our efforts go to. And in this regard, we have been advancing in direct sales. In direct sales of LNG, where we have infrastructure available, we are talking with big customers to supply LNG directly to them.

All our project portfolio includes investment in renewal renewable fuels.

In the energy transition.

At all so.

Speaker #2: Capturing a margin as our CEO said. I would say that this vision is very natural. So we have a driver here. I think it's on the table for discussion and we will look at it.

In our bio fuels it also expects.

Considerable effort for instance.

In electricity, including thermal power plants.

Speaker #2: And obviously, finding this economic rationale as our CEO mentioned and we are going to look at it and this will be considered for approval going through our board.

So again, we will do it provided the project is profitable and attractive provided a project.

Speaker #2: Well, just adding that, from the point of view of governance, as we've already said, we will follow all the assessment by governance availability of funds in order to make investments when needed.

Meet the attractiveness and expectations, although we're confident in terms of economic returns.

Thank you Monica.

<unk>. Thank you for your questions next question Luis <unk> from BTG. Please the floor is yours.

Speaker #2: So, we are really sure that any project will be implemented if it creates value for our shareholders and if there's discipline—discipline in the capital to be used in the project.

Good afternoon. Thank you for taking my question.

I would like to congratulate you for your production ramp up it's really nice to see it.

Speaker #2: So, it has to do with the debt limit we have, and we have been strongly managing our debt. We intend to reach the target.

A question.

I would like to recall highlighted I don't know, maybe two lower to CEO Mazda Fernando <unk>.

Speaker #2: We presented in our strategic plan for 2025-2029. Thank you. Fernando Magna Milani for the question. Next question by Bruno Montanari. Margie Stanley. Good afternoon.

Initial estimates for the year. So this year plan oil 83 per barrel.

As Fernando said now.

Around six to seven six days that the oil price right now and in this scenario.

You have a gap a delta for cash generation that is below what it was initially planned.

Speaker #2: Thank ou for taking my question. I'd like to congratulate the company for the significant increase in production in such a short period of time.

Look at that graph, we know that it's a five years plan, but this year cash generation should be less than planned.

Speaker #2: It's very clear the ramp-up of the new platforms in the pre-sold layer. I'd like to understand about the risk factors that is less than leading to a more conservative curve and connected to a better execution.

And you are keeping the capex guidance for this year and also for next year. So my question is what is the flexibility depending on oil prices and changes in oil prices.

Speaker #2: Try to advance a potential revitalization of Itapinhoa so that you have even greater production in the meantime. Thank you very much. Good morning, everyone.

Vis vis the investment plan.

And also the visa b that debt or indebtedness limits the company cash.

Of course, considering also.

The payment of dividend so in the scenario with lower oil prices you were talking a lot about profitability of projects. They have to show that they have.

Profitable to be approved but one in which level of oil prices could we see not cancellation of progress, but maybe postponing projects towards the end of the plan because.

Speaker #2: We are in very special quarter. We had increase in our production reduction. Well, we spent less. We produced more. And we also strongly reduced our costs.

<unk> lowered cash generation more in the short term.

Thank you Lewis.

Speaker #2: So the issue of production in this field, we are talking about this growth. And this really refers to this reservoir. We have a reservoir in the pre-sold layer and the effective response of this reservoir is only given when the field is connected.

Well, let's talk a bit about.

This topic.

I think the first thing is that last year.

Justin our intense level, so that we could have a little bit more flexibility.

So that we could consider the scenario that occurred.

Speaker #2: We have had very good surprises. Expectations have been confirmed in terms increase in production. And wells that are really very productive. We have four wells with over 200,000 production and by the end of the year, we are planning to increase production but we'd like remind you that we will have this issue of platforms.

And Brent prices and the reduction in revenue. So it still have the limit of our debt. We can still take some investments in the short term, meaning for this year. We have this capex of 18.5, we.

Many contracts that have already been signed so we have scheduled that this should happen that flexibility will take place when we view the strategic plan for <unk> six trillion and 30 that we would have to reevaluate some projects actually we will.

Speaker #2: We have started some big platforms, and we will have the planned shutdown. So this increase will level off. But anyway, by the end of this year, we will have an increase reaching our target.

Look again at all assumptions.

Speaker #2: Asked for plan. But at the upper portion of our target, we are looking at Itapinhoa and Tupi. Improving optimization with new units. To increase production there.

Include these assumptions under protest Mincy, which wasn't physical though who are not they will be along the way or maybe they will be postponed or we will look for engineering alternatives that will lead to lower opex, so that international financially feasible.

Speaker #1: Now adding to the question, you ioned Tupi in particular, right? So as Sylvia mentioned, Tupi is being is having at least another two projects revitalizing Tupi.

Our CEO Seth <unk>.

We had one project in the first time and went back so that we could rethink.

Our engineering, Woodward and whether that would be more profitable alternatives, because we understand that at the current price levels with these very volatile.

Speaker #1: And we call it complementary Tupi. Our challenge is to make Tupi reach the level of 1 million barrels of oil a day. Thank you.

World scenario.

You should have some flexibility for that well dividends will.

We will continue at the same levels.

Speaker #1: Thank you, Sylvia. Thank you, Ma.

There are no discussions going on in terms of changes regarding the ordinary novel the extraordinary with lower.

Speaker #2: Magda, thank you, Bruno for your question. Now Vicente, Vicente of Bradesco. Bradesco so Vicente, over to you.

Revenue, we would have a harder time.

Speaker #3: Good afternoon, everyone. Thank you for taking my question. I'd like to discuss the GOP release for LPG that you published last night. So, any M&A movements in this sector need to be approved in the November plans first, and only then would you make any transactions.

Extraordinary dividend.

Even though we will real life.

Very best to have surplus cash in order to pay.

Extraordinary dividend, but I think the probability for this year is pretty low I would like to add.

And then give the floor to director Renata to further elaborate on that.

Speaker #3: Then you also mentioned on the release that you had would have partnership distribution partnerships according to quote quote provisional contract provisions. So what kind of partnership is this?

Often we earn.

Dealing not only with engineering of the product, but how are we contract projects.

So when we look for example.

Speaker #3: What are these contract provisions? Thank you.

And this issue contracting.

We're in Nash.

So the mere change in the way, we contract and publicizing the price.

Speaker #2: As executive director or Claudio, Claudio Schlosser mentioned, as our production increases, our greatest challenge is to really put these products onto the market. And also to widen our market base.

<unk>.

The dilution of the law and the larger number of lost these.

Man.

A saving of 1 billion Brazilian real forward company.

Speaker #2: We have increasing production that means extending our refinery facility or refinery system. We want to increase diesel as 10, which is highly profitable. And at least an additional 200,000 barrels a day.

So we had a.

Ward.

For BD.

We changed how these packet packages would be contracted and we diluted in a lot of number of packages to have more competition and with that we could save 1 billion Brasilia warehouse and we are multiplying this effort. Another words, and then I'll give the floor to Renata two thirds.

Speaker #2: As a company, there's more pressure for increasing our markets. So, what are we doing? We knock at the door of our largest consumers.

To elaborate on that because after all this is a major asset.

Speaker #2: Including agribusiness in Brazil, agribusiness consumers. We are now having LGP and LPG, not only industrial but also domestic. In other words, we are expanding our natural gas market.

Carried out for her team. So we really have been thinking out of the box when the CEO invited.

To take this position she said it was doing differently and this is what we have been doing it had one of the things we have been doing differently. We just P O T.

Just to give you an idea b O T enables us to change that.

Speaker #2: As you can see, our efforts to have natural gas in Brazil's free market meant that a large number of companies that are now part of this movement by Petroleo Brasil.

Vacations during the bidding process.

Because this is a conceptual.

<unk> design. So you can change requirements in this conceptual design.

With this initiative.

Speaker #2: This is why we extended this gas market by 15%. Now what we cannot have is limitations. To make strides to ake progress in this area.

Yes.

With a lot of discussions with the market we in the past we had some restrictions, but only with this move along with could really use the weight of CF platforms between 15% to 20%.

Speaker #2: So whatever is needed B to B or sales to large consumers, sales to final consumers, in gas stations or even in terms of gas.

That alone represents a cost reduction that is very significant we will open this packages September the 30th.

We expect that with that we will really have a significant reduction in prices.

Our CEO said, depending on the market on the scenario, depending on the demand the bedroom or how the world is depending on geopolitics.

Speaker #2: What we want is to have open doors to make choices, to choose the best company that will add the most value possible. And in the most efficient way of really placing our product in the market.

A brief contract has a different strategy. So that we can take the most.

The best.

Speaker #2: Now after we understood that Petroleo Brasil over time, Petroleo Brasil has chosen to leave some markets behind. We had this duty. So why having this duty of leaving some markets?

Of the AMR contract. Thank you Magda.

Fernando Thank you Luis for your question.

So we're coming.

Through the end of our webcast, we will close the Q&A session. If you have any additional questions you can send it to our.

Speaker #2: Why can't we leave this door open? So that this door may be used in best possible way. And this is what we did yesterday.

Investor Relations team and we will answer them, so I'd like to think.

Speaker #2: Thank you, Magda. Thank you for your question. Now Gabriel Bardo of City. Gabriel, you have the floor.

Oh for having joined our webcast and I'll give the floor to Fernando to monitor.

For their final remarks Fernando Mazda.

Speaker #3: Thank you, Nat. President Magda Fernando's thank you for taking my question. My point here is just one. One of the major topics that has been discussed with investors are, of course, your investment plan for next year.

The floor is yours.

Well I'd like to thank you all for joining us.

I'd like to say that the our team is really available.

You have any further questions.

Speaker #3: We have a perspective and taken the cue of the last commitment when you discussed efficiency gains and the difficulty we have today, hiring new personnel and tighter industry environment.

All always told disposal well.

To close I would like to say that we're really happy because we could show.

Got a proper well funnel.

Capex can do.

Speaker #3: We have a software price movement for probes but I think what I need to understand better is about what's going to happen, what can we expect next year.

Which was to increase production.

In our view this will really.

Say for a very long time with very positive prospects looking forward.

Speaker #3: When you look at our plans, or the future, and also considering your previous CAPEX data. So how flexible are you for next year? And what solutions could you provide or improve for 2026?

And with new equipment Commie with new <unk>.

Production equipment, starting now so I think that our increase will be more the number of decrease and in the last five years. We are really sure that this will take place production was better and Linda it offset.

Speaker #3: And what are MMAs, and also LPG or other fuels? How does that mean more CAPEX efficiency? Or a market that is a little more uncertain in terms of oil pricing the next few months or even next few years?

Reduction in Brent prices and this was very important for Ernest.

<unk> good.

Complete our decision plan as we plan.

Oh contracts.

Regarding distributions will be complied with we have contracts.

Speaker #3: Okay, I'll start answering and then I'll give the floor to Fernando. And also Sylvia and Renata, if they believe they should also comment on the question.

So there is no discussion of arguments we will comply with all this context. This is a commitment we have so thank you all very much and we are available.

Speaker #3: Well, what we are what we've been telling you is that we do have extremely relevant business opportunities in exploration and production of oil. The company has the major focus.

And also doing the.

This week to discuss any issues is deemed necessary.

Well to close.

I would like to thank you all for joining us on this webcast and thank you all for the attention you give to Petrobras and Petrobras businesses.

Speaker #3: Its major focus is exploration and production, with highly profitable projects. You saw the profitability level of these projects. So when we show results in the second quarter, we have decreased prices that were offset by increased production levels.

I agree with Fernando.

And I would like to again say that we are really really too.

Meet everything that has been planned.

Speaker #3: So when we look at these projects, first we will check whether they're profitable. And number two, whether they're itability level is desired. If this is the case, then we move on.

Offering our investors be it government or private investors.

Making sure that Petrobras really want to have profitable projects optimizing it projects portfolio.

Speaker #3: In other words, we will not destroy value; rather, we will move on with profitable projects and in a way it we should also inform you that for the first time in all Petroleo Brasil's life, a project changed its phase.

And.

Really.

Making investments in projects that are as efficient as possible.

Wonderful.

Actions from exploration and production very attractive projects.

Speaker #3: So we had projects that were progressing in our portfolio advancing in their phases, moving on in their phases. You know, you have zero, one, two, three, and four, assigned to our projects.

Including refining them.

The sales we are making money.

We have 24% renewable energy in Asia.

Spending on our markets, we are making money, we opex spending prevention of bids are with profitability very high levels of profitability. So you can oh.

Speaker #3: Four means the project is totally mature. So we had projects that were expected to migrate from phase three to phase four. Now when we look at them, with this new level, they went back to level two.

I'll be real sure.

That Petrobras is making an effort that this board is really making that first so that we can achieve the best results possible I think it will very much our doors are open.

Speaker #3: The idea was that these projects should be optimized. In other words, we won't leave these projects behind. They are still profitable. They used to be profitable before.

In our investor relationship.

Eduardo.

Is available so that we can answer all the classes you may have.

Speaker #3: But the profitability level that they had at that time with the current oil price, we decided to put them a few phases back, back to the drawing board so that these projects to be better optimized.

And so whatever questions you have just asked and coker much and have a nice day.

Thank you Monica Thank you Fernando.

So the presentation will be made available at the Investor relationship website and soon we will also make the audio available. Thank you all very much for having joined US and see you. The next webcast.

Speaker #3: I'll now give the floor to Fernando and then Renata. So that they can give you a little more details. Thank you, Gabriel, for your question.

Speaker #3: First, I should stress that the current scenario is more challenging in that reflects on our business plan. And as we have a this commitment with a capital discipline, all our business plans structure needs to be adequate.

[music].

Speaker #3: To reflect the needs for this new scenario. In other words, we'll able to restructure all our CAPEX that will then meet the needs of our investing capacity.

Speaker #3: Considering our new production curve, that we will deliver until a potentially even above the margin, but within the margin or even in the upper range, then brand is lower.

Speaker #3: So we need to offset that. And then the cash flow generation that is possible. So I believe the greatest goal or greatest commitment is really to reduce cost for the company and also optimizing projects that are present mentioned.

Speaker #3: It's the first time we went back to phase one to consider engineering aspects and then also productivity. So all these factors together they are integrated in our business plan.

Got it.

[music].

Speaker #3: The idea is for us to devise a business plan that shows all this capital discipline with adjusted debt, adjusted to our size. We do not want to increase our debt for no reason, of course.

Speaker #3: Our target is still 65 billion. This will remain. So we want to create a portfolio and a business plan that is safe and secure and adapted to the current situation and scenario.

Speaker #3: Hello, Gabriel. I think they've said everything that had to be said. What I'd just like to add one more point. Whatever the value of our business plan in 2026, rest assured that we will realize make it happen this year.

Yeah.

Speaker #3: In the first quarter of last year, it was at 30% and this quarter it is aligned what we had planned. It was 30 below the expected level.

Speaker #3: So whatever the value we will execute as planned. Now, Magda Fernando, Renata. Thank you and thank you, Gabriel, for your question. Now, Lilian Yan of HSBC.

Speaker #3: You have the floor, Liliani.

Speaker #4: Hello and thank you for the opportunity. Can you please tell us about how different the results are today as compared to what you promised in your strategic plan?

Speaker #4: Of course, it's better than expected. You broke me at the top of the guidance. But again, can you please make comments about your CAPEX, your $18.5 billion investment plan?

Speaker #1: So, in summary, is it safe to say that today there's a higher likelihood of this CAPEX being higher this year? Are you feeling pressure from providers and suppliers? Can you expect Petróleo to put more money into Braskem, and might that be a good consumer of your gas?

Speaker #1: Thank you.

Speaker #2: Hello, Liliana. Thank you for your question. All contracts for our 2025 plan and part of 2026, they are already the contracts already been signed.

Speaker #2: So there's no possibility of our or any idea of a really exceeding our guidance. We will meet whatever was set on our guidance. Our commitment is a short.

Speaker #2: There no surprises ahead.

Speaker #3: Petroleo Brasil's team, if you allow me to just go out of protocol and pinpoint some of the things you've used. You have 470; that was the production number for July.

Speaker #3: And then new platforms this year. So I'd like to confirm something that you said earlier. That the curve with two 470 is still growing and then there's the effect of schedule shutdowns.

Speaker #3: Maybe you can give me more details. This, think, has to do with previous comments I wanted to repeat. These points and maybe if you could clarify them a little bit more.

Speaker #3: And then the question is about the last auction, with the Amazonas blocks. In particular, what was that partnership with Axon like? Do you believe there's synergy?

Speaker #3: With the Guyanas and Suriname? Thank you. Okay, Regis. With regard to the ramp-up, there was indeed a production increase. In our reports, you can see that you have efficiency in the linking of the wells.

Speaker #3: Of the wells. Now, I'm going to tell about the labels you said seven. And the reservoir then responded well. And we had an rapid production increase.

Speaker #3: But this growth, it'll offset by the other large platforms that are programmed to start production. So I can confirm that there's safety. We want our platforms have a long life and also we want to make re that we have future operations.

Speaker #3: So, scheduled shutdowns are essential. They need to be done. But we are within our plan goal, and in the upper range, that's about four.

Speaker #3: So we will have a very positive result. It is important to mention that the pre-sold layer is really surprising in terms of productivity. It's been a very positive surprise.

Speaker #3: With very good results and earnings. We have an oil column that's as high as the Ponte Azucar Mountain. And the size of the Guanabara Bay and Buzios is twice as large as the Guanabara Bay.

Speaker #3: And this is only confirmed when you start producing. As for the auction, yes, we did have the auction and define the 10 blocks. We now have 16.

Speaker #3: Blocks in the in Amapa. We're just waiting for environmental licensing to test our productivity out. I should stress that the blocks we have there, they're very similar to the one that we have in Venezuela and Guyana.

Speaker #3: And very similar to what we have here in the campus basin as well. So we know them really well. And then the partnership with Axon and Shell.

Speaker #3: We have over 30 partners here. Petroleo Brasil has over 30 partners. So choosing for this choice of working with Axon which is a great operator has meant very significant results.

Speaker #3: At that Guyana and that's very similar to the equatorial margin results. So that's the best operator for us to share risks and knowledge. Thank you, Sylvia.

Speaker #3: And hat for your question, Regis, for your question. Now, Nick Greco of Itau Monique Monique, you have the floor, Monique.

Speaker #5: Hello, good afternoon and thank you for taking my questions. By the way, congratulations for your operating performance. It's really impressive. Congratulations to the entire team.

Speaker #5: I have one question only. The message that that your CAPEX and gas was very that message was very clear. Now we know that there are some potential movements on the radar in the on the horizon in the next few months, like President Magda Chambriard mentioned, movements in ethanol, for instance.

Speaker #5: You know that the government will hold auctions for areas the pre-sold layer areas that were not hired. This year still. So can you clarify about what we're ecting in terms of CAPEX execution in addition to the 18.5 billion when you consider these additional movements that are on the short-term horizon?

Speaker #5: Can you maybe explain especially in the non-hired areas? Thank ou. Hello, Monique. Thank you for your question. Okay. Petroleo Brasil will always be present.

Speaker #5: When we discuss any opportunity of auctions. The Brazilian territory is our home. In other words, when pre-sold layer areas are being offered, we will always be present at such auctions.

Speaker #5: This is really in our interest. However, irrespective of any other factor, this will only happen if it makes economic sense to us. No one is considering embarking on a wild adventure, of course.

Speaker #5: If the project is worth it and if it is on our business plan, this is the direction we'll be taking. The same thing applies to ethanol.

Speaker #5: Our project portfolio includes investment in renewable renewable fuels. In energy transition, and also in biofuels, it also expects considerable effort. For instance, in electricity, including thermal power plants.

Speaker #5: So again, we will do it provided the project is profitable and attractive. Provide the project meets the attractiveness and expectations of our company, in terms economic returns.

Speaker #5: Thank you, Magda. Thank you, Monique, for your question. Next question by Luis Cavallo from BTG. Luis, the floor is yours. Good afternoon. Thank you for taking my question.

Speaker #5: I would like to congratulate you for your production ramp-up. It's really nice to see it. I have a question. I'd like to reconcile it.

Speaker #5: I don't know. Maybe in two hours to see you. Magda or Fernando, the initial estimates for this year have planned oil at $83 per barrel.

Speaker #5: As Fernando said, now it's around 67, 68. That's the oil price right now. And in this scenario, you have a gap, a delta for cash generation that is below what was initially planned when we look at that graph.

Speaker #5: We know that it's a five years plan, but this year cash generation should be less than planned. And you are keeping that CAPEX guidance for this year and also for next year.

Speaker #5: So my question is, what is the flexibility depending on oil prices and changes in oil prices? Vis-à-vis this investment plan, and also vis-à-vis the debt or indebtedness limit the company has.

Speaker #5: Of course, considering also the payment of dividends. So in this scenario with lower oil prices, you are talking a lot about the profitability of projects that have to show that they are profitable to be approved.

Speaker #5: But what in which level of oil prices could we see not cancellation of progress, but maybe postponing projects towards the end of the plan because of lower cash generation more in the short term?

Speaker #5: Thank you, Luis. Well, let's talk a bit about this topic. I think that the first thing is that last year we adjusted our debt level so that we could have a little bit more flexibility.

Speaker #5: So that we could consider this scenario that occurred reduction in brand prices and thus reduction in revenue. So it's still a little limit of our debt.

Speaker #5: We can still take some investment. In the short term, meaning for this year, we have this CAPEX of 18.5. We have many contracts that have already been signed.

Speaker #5: So we have scheduled that, and this should happen. The flexibility will take place when we build the strategic plan for 2026-2030. There, we'll have to reevaluate some projects. Actually, we will look again at all assumptions, include these assumptions on the projects, and see which ones are feasible.

Speaker #5: Those who are not, they will be along the way, or maybe they will be postponed, or we will look for engineering alternatives that will lead to lower CAPEX so that it's financially feasible.

Speaker #5: As our CEO said, we had one project and the first time it went back so that we could rethink how our engineering would work and whether that would be more profitable alternative because we understand that at the current price levels, with this very volatile world scenario, we should have some flexibility for that.

Speaker #5: Well, dividends. We'll continue at the same levels. There are no discussions going on in terms of changes regarding the ordinary now for the extraordinary with lower revenue.

Speaker #5: We would have a harder time paying extraordinary dividends, even though we would really like very much to have surplus cash in order to pay extraordinary dividends.

Speaker #5: But I think the probability for this year is pretty low. I would like to add and then give the floor to Director Renata to further elaborate on that.

Speaker #5: But often we are dealing not only with engineering of the project but how we contract projects. So when we look, for example, at this issue contracting Renash, so the mere change in the way we contract and publicizing the price and the dilution of the lots in a larger number of lots these meant a saving of one billion Brazilian reals for our company.

Speaker #5: So we had a word forbidding; we changed how these packages would be contracted, and we diluted them into a larger number of packages to have more competition.

Speaker #5: And with that, we could save one billion Brazilian reals and we are multiplying this effort in other works and I'll give the floor to Renata to further elaborate on that because after all, this is a major effort being carried out per her team.

Speaker #5: So we really have been thinking outside the box. When the CEO invited us to take this position, she said you could do it differently.

Speaker #5: And this is what we have been doing. And one of the things we have been doing differently, which is POT, just to give you an idea, POT enables us to change specifications during the bidding process.

Speaker #5: Because this is a conceptual concept, it's designed so you can change requirements in this conceptual design. When this initiative and a lot of discussions with the market occurred, we, in the past, had some restrictions.

Speaker #5: But only with this move along we could reduce the weight of CI platforms between 15 to 20%. That alone represents a cost reduction that is very significant.

Speaker #5: We will open these packages on September 30th, and we expect that with that, we will really see a significant reduction in prices. Our CEO said that depending on the market, on the scenario, on the demand, on how the world is, and on geopolitics, every contract has a different strategy.

Speaker #5: So that we can take the most the best of the all contracts. Thank you, Magda. Thank you, Fernando, Renata. Thank you, Luis, for your question.

Speaker #5: So, we are coming to the end of our webcast. We will close the Q&A session. If you have any additional questions, you can send them to our Investor Relations team, and we will answer them later.

Speaker #5: So, I'd like to thank you all for having joined our webcast. I'll give the floor to Fernando and Magda for their final remarks.

Speaker #5: Fernando Magda. The floor is yours.

Speaker #2: Well, I'd like to thank you all for joining us. I'd like to say that our team is really available. If you have any further questions, we are always at your disposal.

Speaker #2: Well, to close, I'd like to say that we are really happy because we could show what a properly well thought out and planned CAPEX can do.

Speaker #2: Which was to increase production. In our view, this will really stay for a very long time with very positive prospects looking forward. And with new equipment coming, with new production equipment starting up.

Speaker #2: So I think that our increase will be more than our decrease, and in the next five years, we are really sure that this will take place.

Speaker #2: Production was better, and with that, it offset the reduction in brand prices. This was very important for our earnings so that we could complete our decision plan as we planned.

Speaker #2: And all contracts regarding distribution will be complied with. We have contracts, so there is no discussion, no argument. We will comply with all these contracts.

Speaker #2: This is a commitment we have. So, thank you all very much. We are also available during this week to discuss any issues you deem necessary.

Speaker #2: Well, to close, I would like to thank you all for joining us in this webcast. And thank you all for the attention you give to Petróleo Brasileiro and Petróleo Brasileiro's businesses.

Speaker #2: I agree with Fernando and I would like to again say that we are really willing to meet everything that has been planned. Offering our investors with government or private investors making sure that Petroleo Brasil really want to have profitable projects optimizing its projects portfolio and really making investments and projects that are as efficient as possible.

Speaker #2: We have wonderful actions from exploration and production, very attractive projects including refining and sales. We are making money; we have 24% renewable energy in Asia and are expanding our market.

Speaker #2: We are making money. We are expanding production of diesel with profitability—very high levels of profitability. So, you can all be reassured that Petroleo is making an effort and that this board is really making an effort so that we can achieve the best results possible.

Speaker #2: Thank you all very much. Our doors are open, and our investors' relationship manager, Eduardo Molinari, is available to answer all the questions you may have. So whatever questions you have, just ask.

Speaker #2: Thank you very much, and have a nice day. Thank you, Magda. Thank you, Fernando. The presentation will be made available on the investors' relations website, and soon we will also make the audio available.